Risk Management is Important in Forex

[shaunna75]

Forex trading can be risky if you don't know how to use proper risk management. Forex is considered to be one of the most risky forms of investing because of the availability of leverage and unpredictable outcome. Newbies can minimize the risks by learning proper risk management and developing a solid trading plan. They should also learn to control their emotions to make better decisions.

 

[forexdiscussion]

I can't agree more with your statement. Risk management is just like the oxygen that we breath to live. Forex trading involve high risk, so manage risk first and foremost. Risk management a.k.a money management is vital in order to survive and prosper in forex trading

 

[JahDave]

I can't agree more with your statement. Risk management is just like the oxygen that we breath to live. Forex trading involve high risk, so manage risk first and foremost. Risk management a.k.a money management is vital in order to survive and prosper in forex trading

I can agree with that..........I only trade 10% of my account on any single trade........I never trade more than 10% on any one position.

 

[forexdiscussion]

Hi JahDave,

Is 10% is quite a big portion of your account? let say you hit 10 losing streak in a row doesn't it will wipe out your account?

 

[the mule]

hello
money managment is very important to stay alive in forex but you have to set up your MM with your % of win trade and your time frame is important more you use a small time frame with for example 65% of win trade and more your stop loss will be close to your profit target (for example 1/2) and a lot of poeple talk about 1/3 stp loss of target profit but you have to check if a better MM is good for you
personaly (because of my strategy) I think 1O% per trade is too much risquy but for another strategy it could be good
so you have to study your strategy to set up your MM there is no inconditional ratio to set up MM the only one rules is you have to set up MM that must fit your strategy
ciao

 

[tomorton]

Forex trading can be risky if you don't know how to use proper risk management. Forex is considered to be one of the most risky forms of investing because of the availability of leverage and unpredictable outcome. Newbies can minimize the risks by learning proper risk management and developing a solid trading plan. They should also learn to control their emotions to make better decisions.

Did you really write this obvious and facile stuff yourself? And post it word for word on 7 other boards? By not posting your own thoughts, you simply demonstrate you haven't any thoughts to post.

 

[anley]

She's working an agenda with a view to spamming the board at a late date. Probably some kid out of India working on behalf of others from an internet cafe.